Which is why I never understood the "materials * x" costing
That actually sounds pretty fun in sort of the abstract sense. The actual amount of fun likely varies depending on the specifics
Ryan,
I have been taught to sell on "value", and I do that. It is also a good idea to measure the cost to make sure that time and material is equal to or less than - value. I do have a value associated with my labor. I think of it as a minimum. I do NOT sell by materials * X --- That is NOT a good business practice. Most of the time I will double the material cost then add my labor. After all, I do go the store, transport, shop, research and all that on material. Therefore, value has been added to the material. The real cost of material is more than what is shown on the receipt. My labor rate is higher than my hourly rate that I was making as an engineer.
It IS certainly challenging to get to a place whereas you can achieve a "reasonable" labor rate. YES, it IS possible. Min wage does not cut the mustard.
Now there IS a reasonable argument to the material x 2 strategy. In publication 528 of the IRS, they DO describe a situation whereas the hobbyist will sell at cost or even at a loss - for the love of the process. That IS legit, as long as that is a decision that has been thought out and accepted.
My thought is that I WANT to be profitable, and earn a respectable wage. It's a challenge that I seek and desire to achieve. No, it's not everybodys cup of tea, but it is mine. Part of my hobby - is to achieve it.
Soo - that means finding a way to do it, even if it means making a product that you don't necessarily choose to do. It certainly does challenge us to learn more. One of the reasons I sell stuff is to have customers expand my envelope. Maybe what we "want" to make just is not profitable.
If I make and sell earrings for $12.00 a pair, I am making about $150.00 per hour. I will - but it's not my first choice in product. The whales are more fun, and they are profitable, but not as much as earrings. I did a painting job recently and got paid well over $100/hr. I don't love painting, but the money was nice.
YES - I enjoy it. It has it's days, not always fun. Some days are no fun at all, but I take the good with the bad. Overall it IS rewarding. I like challenges, I like solving problems, I like helping people and I like getting paid. I guess I am a little demented, strange, weird but I am happy. It keeps me going. I see a lot of older retired guys spending their days at McDonalds or Dunkin Donuts shooting the breeze, drinking coffee and reminiscing about the good old days. That is NOT me.
BTW - my client is 77 years old and has never touched a CNC machine in his live.